Forex: Looking at Dollar and Yen as Focus Turns from Taper to Risk
• The markets have opened the new trading week further fading expected 'No Taper' optimism
• Yields and long-term trend support the risk-positive theme, but counter trend opportunities exist
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The market traded Fed Taper speculation for traditional risk trends quickly this past week. And, this week we have opened to the FX market's tentative collusion to the S&P 500's risk aversion move. Given the extended position of equities over the medium-term and short-term extremes for various currency pairs, many traders will be drawn to trading immediate reversals. However, potential does not necessarily equate to probability. In today's video, we weigh the opportunities for risk-based trades with particular emphases on the dollar and yen crosses.
Find out what event risk can threaten the trade setups discussed in today's video with the DailyFX Economic Calendar.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.